Farmers Insurance pulling out of Florida State Farm not going anywhere

By Tami Stevenson

Farmers Insurance announced last Tuesday they were pulling out of Florida. It said it was discontinuing new coverage of auto, home and umbrella policies. Although it said there will be no effect on 70 percent of current policies, it has no plans to write new policies for Florida residents.

     Insurance Commissioner Michael Yaworsky expressed disappointment in what he called a “hasty” decision.

     Farmers said in a statement that the decision was based on risk exposure in the hurricane-prone state, in spite of the historic reforms Governor DeSantis and the Legislature are implementing for insurance companies.

     Farmers stated that notifications will be sent out to affected policyholders.

     State Farm Insurance rose up just days after Farmers announced it was pulling out and told news sources they aren’t going anywhere. They are sticking with Florida.

     While State Farm is re-doubling its efforts in Florida, they announced a couple months ago they are not creating new policies in California as of May 27, 2023. State Farm stated they made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market. However, their decision, they said, does not impact California personal auto insurance.

     State Farm is arguably the largest property insurer in the nation.